analysis on how to handle my first deal with my GC

[Jonathan Prettyman]

Hey guys, Here is an example of my first deal I am looking to do. I mainly need advice on which route to take with my GC, who is my father in law. I proposed to him 2 scenarios. and he suggested a 3rd. Initially I came to him with this idea. I want to get into buying and flipping and he would be my contractor. so I would put up all money. secure a mortgage, carry the holding costs and I strictly pay him to do the work with my own money. then When I sell I recoup all profit. another option I suggested so we could pay cash would be if we went 50/50 on everything. (he puts up cash or line of credit) and we split profit at the end. so he suggested a little different of a 50/50 split which I am unsure about? So I would put up all money (mortgage, material, etc) no labor cost. then when we sell we split all profit after I get all money I put up back. so he puts up no money but gets paid when we sell. also he would bring in another contractor as his partner to help with work. so his idea was when we sell, I recoup all money I put out of pocket and I would get 50% of profit and he and his partner split the remaining 50% at 25%/25% for doing the work. Example of a deals S price range I am looking at. 50-60k purchase price (hopefully cheaper) of a row home/townhouse in suburb in Delaware county area Philadelphia Full renovation 35-50k in renovation costs (that would be with labor included) total in and out costs roughly 90-110k and comps are 130-150k (these are all general numbers, not a specific deal.) so my question is which route should I take with him and is his proposed "50/50" deal fair? I understand if I pay him per job I have a higher risk and higher reward. and he gets paid regardless. and worst case scenario I rent it out if I can't sell it for what I want. the other side is if we are all invested then nobody gets paid until we sell. any advice would be greatly appreciated it. thank you.